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Has the AI boom already peaked?
Tom Coughlin discusses the greater hard disk drive industry as companies like Micron (MU), Western Digital (WDC), SanDisk (SNDK) and other AI memory chips command price action. He predicts 80% of data center information will be stored via HDD, opening the door for these companies to command the space even more.
Despite the brutal pullbacks in AI-related stocks, debt fears are far overblown and the bullish fundamental case remains rock-solid for the foreseeable future.
Micron, SK Hynix and SanDisk shares traded higher on Friday as a rebound in the broader semiconductor sector lifted investor sentiment following a technology-led selloff in the previous session. Micron MU gained more than 3%, while SK Hynix rose over 4% and SanDisk advanced 1.4%.
SanDisk has shed a third of its value in a month even as its business posts record numbers and locks in nearly $94 billion in signed customer contracts.
SK Hynix (NASDAQ:SKHY) shares climbed about 4% to $136.58 in morning trading, outpacing gains in other memory names after the company halted plans for a U.S. IPO of its Solidigm flash-memory unit.
Stock futures are pointing lower after yesterday's tech sell-off; cell tower stocks are surging after a report that SpaceX aims to secure thousands of cell sites; American Express raised its profit forecast; Western Digital's earnings are failing to lift the stock; and Deckers Outdoor shares are falling after an earnings miss. Here's what you need to know today.
Sandisk is a Buy with a 12-month price target of $1,830, reflecting 32% upside and minimal direct DRAM exposure. The recent CXMT DRAM news triggered an 18% drop, but SNDK's contracted flash business and Japanese supply chain insulate it from DRAM-specific risks. NBM agreements cover $59.8B in future revenue, with price floors and ceilings, supporting earnings even if flash prices decline sharply.